Author Topic: Medicaid compliant annuity  (Read 1045 times)

9patch

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Medicaid compliant annuity
« on: September 23, 2021, 03:27:05 PM »
Hi. My husband has ALS, and we are currently private paying for care (at $35/hr). I met with a lawyer today to talk about qualifying for Medicaid to pay for care, and she said that the non-applying spouse can only have $120,000 assets including 401K. One common thing that is done is to pull your 401K out except for the 120,000 and put it into a Medicaid compliant annuity, and then take a dispersement from that monthly. That way you can avoid paying taxes on the amount withdrawn. Has anyone done this? Pros and cons? We would be pulling around 500K out. We are in Oregon. I do plan to retire early, maybe in 5 years.

Axecleaver

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Re: Medicaid compliant annuity
« Reply #1 on: October 05, 2021, 02:12:28 PM »
Medicaid eligibility since the ACA passed is based on household income, not assets. The exception would be admittance to a long term care facility, which it didn't sound like you were describing. I recommend you go to the Oregon Medicaid site and apply, they will give you a formal decision and if you're ineligible, they will tell you why. Was the lawyer selling annuities by any chance? If you are working full time, you probably do not qualify.

jim555

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Re: Medicaid compliant annuity
« Reply #2 on: October 14, 2021, 09:13:13 PM »
Medicaid eligibility since the ACA passed is based on household income, not assets. The exception would be admittance to a long term care facility, which it didn't sound like you were describing. I recommend you go to the Oregon Medicaid site and apply, they will give you a formal decision and if you're ineligible, they will tell you why. Was the lawyer selling annuities by any chance? If you are working full time, you probably do not qualify.
Medicaid for elderly and disabled still has an asset test in all states.  The OP should consult with an eldercare attorney.

9patch

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Re: Medicaid compliant annuity
« Reply #3 on: October 20, 2021, 03:41:08 PM »
I am working with an elder care attorney. They're the ones that suggested I move my 401K into a medicaid compliant annuity. I think we'll go ahead and do that.